Crypto Market Crash Wipes Millions of Dollars From North Korea’s Kitty of Stolen Cryptocurrencies – Bitcoin News

The recent plunge in the value of cryptocurrencies may have wiped out millions from North Korea’s fund comprised of stolen crypto assets. The diminishing value of cryptocurrencies is believed to be affecting Pyongyang’s ability to fund its weapons programs.

Stolen Crypto Assets and North Korea’s Weapons Programs

The recent crash of the crypto market may have wiped out millions of dollars in value from North Korea’s fund of stolen cryptocurrency, digital asset investigators have said. According to some reports, the decline in crypto assets’ value could threaten North Korea which relies heavily on digital assets stolen for its funding.

According to a Reuters report, which quotes unnamed sources in the South Korean government, the bearish market will likely complicate North Korea’s ability to fund its weapons programs. Korea Institute for Defense Analyses in Seoul estimates that Pyongyang spent up to $620million on missile tests alone this year.

Chainalysis is an analysis company that analyzes blockchain assets. It believes that the amount of stolen crypto assets, which were believed to have been stolen by North Korean-backed hackers, has plummeted from $105million to $65million since the beginning of this year.

Nick Carlsen is another investigator with TRMLabs. He believes the value of one cryptocurrency that was stolen during a 2021 heist, has fallen between 80%-85% since then.

Fake News

While global law enforcement agencies have insisted that North Korea is behind the cyber-criminal organization Lazarus Group, which is accused of carrying out the Ronin hack, a North Korean official stationed at the country’s embassy in the United Kingdom has rejected the accusations. The unnamed official said this is “totally fake news.”

North Korea has been accused of hacking cryptocurrency as global sanctions are continuing to block its access to funding through global financial markets. The report states that North Korea does not get the true market value of the stolen cryptocurrency, as it uses only brokers who are willing to buy or convert cryptocurrencies.

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Terence Zimwara

Terence Zimwara was a Zimbabwe award-winning journalist and author. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.